DWP response to former worker's fears over State Pension means testing

Middle aged man looking at bills
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Over 10 million elderly individuals in the UK are not eligible for Winter Fuel Payments this year as they do not qualify for a means-tested benefit such as Pension Credit. The Labour Government justified the policy change as necessary due to a £22 billion deficit in public funds left by the Tories.

Kemi Badenoch told LBC on Thursday that the Conservatives are considering means-testing the Triple Lock. However, a former Department for Work and Pensions (DWP) employee with more than four decades of experience dealing with State Pensions and benefits believes changes to the current uprating policy for the State Pension are unlikely.

Sandra Wrench from Bedford wrote a detailed nine-page letter to the DWP last year, submitted through her local MP, Mohammad Yasin, shortly after Rachel Reeves announced the policy change to the Winter Fuel Payment. Mrs Wrench expressed her concerns about the potential for means-testing the State Pension and explained why the UK Government would face "great difficulty" implementing such a significant policy change due to the complexity of the contributory benefit.

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Responding to the former DWP worker's worries, then Pensions Minister Emma Reynolds confirmed that the UK Government "have no plans" to means-test the State Pension.

In a comforting development, the Government has outlined its position to Mohammad Yasin in correspondence from Ms Reynolds. Apologising for any worries sparked by speculation, she conveyed: "I am sorry that speculation and rumour has caused Mrs Wrench undue concern. Ensuring a better deal for current and future pensioners is a priority for this Government" as per reports the Daily Record.

On the matter of State Pension, her letter added: "I can confirm that the State Pension is not subject to a means-test, and we have no plans to change this."

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The query prompting this response was raised by 72 year old Mrs Wrench, who desired a definitive statement to alleviate concerns around the State Pension which, for numerous individuals, represents their only source of income. According to the Daily Record, Mrs Wrench expressed the significance of having financial certainty in one's retirement years: "You need some kind of financial security in later life, so having a State Pension which is not means-tested gives people that security, which is why I feel that it is such an important issue."

Mrs Wrench also touched upon the difficulties that seniors encounter with means-testing procedures: "It is easy for some people to say that you can claim a means-tested benefit, such as Pension Credit, but as you get older you may not have the mental energy levels to cope with completing a 23-page form, including listing all your assets, and notifying DWP of any change."

In a further boost for pensioners, the UK Government has announced that State Pension payments will rise by 4.1 per cent from April 7, in line with the earnings growth measure outlined in the Triple Lock policy. This will positively impact millions receiving the New and Basic State Pension.

The Pension Credit earnings threshold is also set to increase by 4.1% from the current £11,400 to £11,850 in April. This rise mirrors the State Pension uprating which could see those on the full, New State Pension receive an uplift of up to £470 over the 2025/26 financial year.

State Pension payments 2025/26

It's crucial to note that additional State Pension elements will increase by the September CPI figure of 1.7%.

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Full New State Pension

  • Weekly payment: £230.25 (from £221..20)

  • Four-weekly payment: £921 (from £884.80)

  • Annual amount: £11,973 (from £11,502)

Full Basic State Pension

  • Weekly payment: £176.45 (from £169.50)

  • Four-weekly payment: £705.80 (from £678)

  • Annual amount: £9,175 (from £8,814)